AUTO MANUFACTURERS
IN CHINA:
PROFILES - SAMPLE
© Access Asia Limited, 2003
Auto Manufacturers in China: Profiles
Contents
CHINA CONTACT.......................................................................................................I
CONTENTS .................................................................................................................II
INTRODUCTION.........................................................................................................1
Report Coverage.....................................................................................................................................................1
Executive Summary...............................................................................................................................................2
Glossary.....................................................................................................................................................................3
Other Related Reports in the China Contact Series.....................................................................................4
Free Monthly Online Newsletters ......................................................................................................................5
China Fast Facts .....................................................................................................................................................6
1 CHINA’S AUTOMOBILES MARKET...................................................................7
1.1 Total Market.....................................................................................................................................................7
Table 1.1 TOTAL AUTOMOBILE SALES VOLUME & VALUE, 1994-Q1/2003 ........... 9
1.2 Sector Breakdown ...........................................................................................................................................9
Table 1.2 TOTAL VEHICLE VALUE SALES BY SECTOR, 1994-2002.................... 10
2 AUTOMOBILE PRODUCTION IN CHINA ........................................................11
2.1 Total Domestic Production..........................................................................................................................11
Table 2.1 TOTAL OUTPUT VOLUME, 1994-2002............................................................... 11
2.2 Domestic Production by Sector..................................................................................................................11
Table 2.2 TOTAL OUTPUT VOLUME BY VEHICLE TYPE, 2000-2003* ................ 11
2.3 Domestic Production by Region.................................................................................................................12
Table 2.3 REGIONAL STATISTICS OF CHINA’S LEADING SALOON CAR
MANUFACTURERS, 2001......................................................................................................... 13
3 KEY MANUFACTURERS BY REVENUES......................................................14
Table 3.1 SUMMARY STATISTICS OF CHINA’S LEADING SALOON CAR
MANUFACTURERS, 2001......................................................................................................... 14
4 MAJOR COMPANY PROFILES.........................................................................15
4.1 Anhui Jianghuai Automobile Chassis Co., Ltd. ....................................................................................15
4.1.1 Anhui Jianghuai Automobile Chassis: Company Details ................................................................. 15
4.1.2 Anhui Jianghuai Automobile Chassis: Company Background........................................................ 15
4.1.3 Anhui Jianghuai Automobile Chassis: Financial Results................................................................. 16
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Table 4.1 ANHUI JIANGHUAI AUTOMOBILE CHASSIS CO., LTD.: FINANCIAL
RESULTS, 2000-2002 ....................................................................................................................... 16
4.2 ASIMCO ..........................................................................................................................................................17
4.2.1 ASIMCO: Company Details .................................................................................................................. 17
4.2.2 ASIMCO: History ................................................................................................................................... 17
4.2.3 ASIMCO: China Operations ................................................................................................................. 17
Table 4.2 ASIMCO SUBSIDIARIES 2003.......................................................................... 18
4.2.4 ASIMCO: Beijing Tianwei Fuel Injection Equipment Inc. (BYC) ................................................ 18
4.2.5 ASIMCO: Harbin Flying Automotive Electric Apparatus Co., Ltd............................................... 18
4.2.6 ASIMCO: Sichuan Danchi Industry Co., Ltd..................................................................................... 19
4.2.7 ASIMCO: Langfang Meilian Brake Installation Co., Ltd................................................................ 19
4.2.8 ASIMCO: CAC Brake Co., Ltd............................................................................................................ 19
4.2.9 ASIMCO: Hubei Super-Elec Auto Electric Motor Ltd., Liability Co. (HSE) .............................. 19
4.2.10 ASIMCO: Anhui Ningguo Zhongding Automobile Components Co., Ltd................................ 20
4.2.11 ASIMCO: Shanxi International Casting Co. Ltd............................................................................. 20
4.2.11 ASIMCO: Nanyue Fuel Injection Pump Assembly Co., Ltd. (NYC).......................................... 20
4.2.12 ASIMCO: Sichuan Shuangtai Wheel Co., Ltd................................................................................. 20
4.2.13 ASIMCO: Yizheng Shuang Huan Piston Ring Co., Ltd. (CYPR)................................................ 20
4.2.14 ASIMCO: Alliance Brewing Group................................................................................................... 20
4.2.15 ASIMCO: Products and Services ....................................................................................................... 21
Table 4.3 ASIMCO PRODUCTS AND JOINT VENTURE PARTNERS.......................... 21
4.2.16 ASIMCO: Future Strategy................................................................................................................... 21
4.3 Audi AG ...........................................................................................................................................................22
4.3.1 Audi AG: Company Details ................................................................................................................... 22
4.3.2 Audi AG: Comp any Background ......................................................................................................... 22
4.3.3 Audi AG: China-Related Activities ..................................................................................................... 23
Table 4.4 AUDI AG: PRODUCTION OF VEHICLES, 2002 2001 ..................................... 23
Table 4.5 AUDI AG: SALES OF VEHICLES, 2002 2001..................................................... 24
Table 4.6 AUDI AG: CHINA SALES OF AUDI A6, 2000-2002......................................... 24
4.3.4 Audi AG: Financial Results................................................................................................................... 24
Table 4.7 AUDI AG: FINANCIAL RESULTS, 2001-2002 ................................................... 25
4.3.5 Audi AG: Future Strategies ................................................................................................................... 25
4.4 Beijing Jeep Corporation Ltd. ...................................................................................................................26
4.4.1 Beijing Jeep: Company Details ............................................................................................................. 26
4.4.2 Beijing Jeep: Company Background.................................................................................................... 26
4.4.3 Beijing Jeep: Products & Brands.......................................................................................................... 27
4.4.4 Beijing Jeep: Product Offering.............................................................................................................. 27
4.4.5 Beijing Jeep: The Beijing Jeep Engine Plant...................................................................................... 27
4.4.6 Beijing Jeep: After Sales Service.......................................................................................................... 27
4.4.7 Beijing Jeep: Recent Developments..................................................................................................... 28
4.4.8 Beijing Jeep: Financial Results ............................................................................................................. 29
Table 4.8 BEIJING JEEP CORPORTATION: FINANCIAL RESULTS, 2000-2001 ...... 29
4.5 Beiqi Futian Automobile Co., Ltd.............................................................................................................30
4.5.1 Beiqi Futian Automobile: Company Details ....................................................................................... 30
4.5.2 Beiqi Futian Automobile: Company Background ............................................................................. 30
4.5.3 Beiqi Futian Automobile: Financial Results....................................................................................... 31
Table 4.9 BEIQI FUTIAN AUTOMOBILE CO., LTD.: SECTORAL RESULTS, 2002. 31
Table 4.10 BEIQI FUTIAN AUTOMOBILE CO., LTD.: FINANCIAL RESULTS, 20002002
31
4.6 Brilliance China Automotive Holdings....................................................................................................32
4.6.1 Brilliance: Company Details ................................................................................................................. 32
4.6.2 Brilliance: Company Details ................................................................................................................. 32
4.6.3 Brilliance: China Related Activities..................................................................................................... 32
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4.6.4 Brilliance: Financial Results.................................................................................................................. 34
Table 4.11 BRILLIANCE CHINA AUTOMOTIVE HOLDINGS: INTERIM
FINANCIAL RESULTS, 2000-2002*............................................................................................ 34
4.7 BMW Group...................................................................................................................................................35
4.7.1 BMW: Company Details ........................................................................................................................ 35
4.7.2 BMW: Company Background............................................................................................................... 35
4.7.3 BMW: China-Related Activities........................................................................................................... 35
4.7.4 BMW: Financial Results ........................................................................................................................ 36
Table 4.12 BMW GROUP: PRODUCTION OF VEHICLES, 2001/2002 .......................... 36
Table 4.13 BMW GROUP: SALES OF VEHICLES, 2001/2002 ......................................... 36
Table 4.14 BMW GROUP: FINANCIAL RESULTS, 2000-2002 ........................................ 37
4.7.5 BMW: Future Strategies......................................................................................................................... 37
4.8 Changchun Changling Group....................................................................................................................38
4.8.1 Changchun Changling: Company Details ........................................................................................... 38
4.8.2 Changchun Changling: Company Background.................................................................................. 38
4.8.2 Changchun Changling: Financial Results ........................................................................................... 39
Table 4.15 CHANGCHUN CHANGLING: FINANCIAL RESULTS, 2000-2002 ........... 39
4.9 Changchun First Automobile Works (FAW) Car Stock Ltd. Corporation ..................................40
4.9.1 FAW: Company Details ......................................................................................................................... 40
4.9.2 FAW: Company History ........................................................................................................................ 40
4.9.3 FAW: Recent Developments................................................................................................................. 41
4.9.5 FAW: Financial Results ......................................................................................................................... 42
Table 4.16 FAW: FINANCIAL RESULTS, 2000-2002 ......................................................... 42
4.9.6 FAW: Future Strategies .......................................................................................................................... 42
4.10 China Aviation Industry Corporation (CAIC) ...................................................................................43
4.10.1 CAIC: Company Details ...................................................................................................................... 43
4.10.2 CAIC: Company Background............................................................................................................. 43
Table 4.17 CAIC: LIST OF SUBSIDIARIES, 2003........................................................... 44
4.10.3 CAIC: Vehicle Related Activity......................................................................................................... 44
4.11 China Jialing Industrial Group Co. Ltd. ..............................................................................................46
4.11.1 China Jialing: Company Details ......................................................................................................... 46
4.11.2 China Jialing: Company Background................................................................................................ 46
4.11.3 China Jialing: Financial Results ......................................................................................................... 47
Table 4.18 CHINA JIALING: FINANCIAL RESULTS, 2000-2002 ................................... 47
4.12 China North Industries (NORINCO) Vehicle Works.......................................................................48
4.12.1 NORINCO: Company Details ............................................................................................................. 48
4.12.2 NORINCO: Company Background ................................................................................................... 48
Table 4.19 NORINCO: PRODUCT RANGE 2003.................................................................. 50
4.13 China Space Industry Corporation (CSIC) .........................................................................................51
4.13.1 CSIC: Company Details ....................................................................................................................... 51
4.13.2 CSIC: Company Background.............................................................................................................. 51
4.13.3 CSIC: Guizhou-Subaru ........................................................................................................................ 51
4.14 Chongqing Chang’an Automobile Co., Ltd. ........................................................................................52
4.14.1 Chongqing Chang’an Automobile Co. Ltd.: Company Details .................................................... 52
4.14.2 Chongqing Chang’an Automobile Co. Ltd.: Company Background ........................................... 52
Table 4.20 CHONGQING CHANG’AN AUTOMOBILE CO. LTD.: UNIT
PRODUTION BY PRODUCT, 2002.............................................................................................. 53
Table 4.21 CHONGQING CHANG’AN AUTOMOBILE CO. LTD.: TURNOVER BY
PRODUCTS, 2002 ............................................................................................................................. 53
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Table 4.22 CHONGQING CHANG’AN AUTOMOBILE CO. LTD.: AUTOMOTIVE
MANUFACTURER COMPARATIVE RANKING, 2002 ......................................................... 54
Table 4.23 CHONGQING CHANG’AN AUTOMOBILE CO. LTD.: OPERATIONS
AND PERFORMANCE OF SUBSIDIARIES, 2002 .............................................................. 54
4.14.3 Chongqing Chang’an Automobile Co. Ltd.: Financial Results..................................................... 54
Table 4.24 CHONGQING CHANG’AN AUTOMOBILECO. LTD.: FINANCIAL
RESULTS, 2000-2002 ....................................................................................................................... 55
4.15 Cummins Inc.................................................................................................................................................56
4.15.1 Cummins Inc.: Company Details ........................................................................................................ 56
4.15.2 Cummins Inc.: History ......................................................................................................................... 56
4.15.3 Cummins Inc.: China Operations....................................................................................................... 56
4.15.4 Cummins Inc.: Financial Results........................................................................................................ 57
Table 4.25 CUMMINS CORPORATION: FINANCIAL RESULTS, 2000-2001 ............. 57
4.16 Daewoo Group..............................................................................................................................................58
4.16.1 Daewoo: Company Details .................................................................................................................. 58
4.16.2 Daewoo: Company Background......................................................................................................... 58
4.16.3 Daewoo: China Automotive Activities.............................................................................................. 58
4.16.4 Daewoo Group: China Auto Parts Operations................................................................................. 59
4.16.5 Daewoo Group: Financial Results...................................................................................................... 59
Table 4.26 DAEWOO GROUP: FINANCIAL RESULTS, 2001-2002 ............................... 60
4.16.6 Daewoo Group: Future Strategy......................................................................................................... 60
4.17 Daihatsu Motor Company.........................................................................................................................61
4.17.1 Daihatsu: Company Details ................................................................................................................. 61
4.17.2 Daihatsu: Company Background........................................................................................................ 61
4.17.3 Daihatsu: China Activities ................................................................................................................... 61
4.17.4 Daihatsu: Financial Results ................................................................................................................. 61
Table 4.27 DAIHATSU MOTOR COMPANY: FINANCIAL RESULT S, 2000-2002 .... 62
4.18 DaimlerChrysler AG..................................................................................................................................63
4.18.1 DaimlerChrysler: Company Details ................................................................................................... 63
4.18.2 DaimlerChrysler: Company Background.......................................................................................... 63
Table 4.28 DAIMLERCHRYSLER: TOTAL UNITS SALES OF VEHICLES
WORLDWIDE 1995-1999 ............................................................................................................... 64
4.18.3 DaimlerChrysler: China Activities ..................................................................................................... 64
4.18.4 DaimlerChrysler: Financial Results ................................................................................................... 65
Table 4.29 DAIMLERCHRYSLER GROUP: FINANCIAL RESULTS, 2000-2002 ....... 66
Table 4.30 DAIMLERCHRYSLER GROUP: % REVENUES BY BRAND, 2002 .......... 66
Table 4.31 DAIMLERCHRYSLER GROUP: ASIAN OPERATIONAL STATISTICS
AND SALES REVENUES, 2002 .................................................................................................... 67
4.18.4 DaimlerChrysler: Future Strategy ...................................................................................................... 67
4.19 Dana Corporation .......................................................................................................................................68
4.19.1 Dana Corporation: Contact Details .................................................................................................... 68
4.19.2 Dana Corporation: History .................................................................................................................. 68
4.19.3 Dana Corporation: China Operations................................................................................................. 68
4.19.4 Dana Corporation: Products and Services......................................................................................... 69
4.19.5 Dana Corporation: Company Structure ............................................................................................. 69
Automotive Systems Group........................................................................................................................ 69
Automotive Aftermarket Group................................................................................................................. 69
Engine Systems Group................................................................................................................................. 69
Heavy Truck Group...................................................................................................................................... 69
Off-Highway Systems Group ..................................................................................................................... 70
Fluid Systems Group.................................................................................................................................... 70
Leasing Services ........................................................................................................................................... 70
4.19.6 Dana Corporation: Financial Results................................................................................................. 70
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Table 6.32 DANA CORPORATION: FINANCIAL RESULTS, 2001/2002...................... 70
4.19.7 Dana Corporation: Future Strategy .................................................................................................... 70
4.20 Delphi Automotive Systems ......................................................................................................................71
4.20.1 Delphi Automotive Systems: Contact Details .................................................................................. 71
4.20.2 Delphi Automotive Systems: Company Background..................................................................... 71
4.20.3 Delphi Automotive Systems: China Operations.............................................................................. 72
4.20.4 Delphi Automotive Systems: Products and Services ...................................................................... 73
4.20.5 Delphi Automotive Systems: Financial Results............................................................................... 73
Table 4.33 DELPHI AUTOMOTIVE SYSTEMS: FINANCIAL RESULTS, 2000-200274
4.20.6 Delphi Automotive Systems: Future Strategy.................................................................................. 74
4.21 Denway Motors Ltd. ...................................................................................................................................75
4.21.1 Denway Motors: Contact Details ....................................................................................................... 75
4.21.2 Denway Motors: Company Background........................................................................................... 75
4.21.3 Denway Motors: China Operations.................................................................................................... 75
4.21.4 Denway Motors: Financial Results .................................................................................................... 76
Table 4.34 DENWAY MOTORS: FINANCIAL RESULTS, 2001/2002............................ 76
4.21.5 Denway Motors: Future Stategy......................................................................................................... 77
4.22 Dongfeng Motor Company Ltd. ..............................................................................................................78
4.22.1 Dongfeng Motor Company: Contact Details .................................................................................... 78
4.22.2 Dongfeng Motor Company: Company Background....................................................................... 78
The Light Truck Company.......................................................................................................................... 79
The Diesel Engine Company...................................................................................................................... 79
The Foundry Company................................................................................................................................ 79
4.22.3 Dongfeng Motor Company: Dongfeng-Citroen Automobile Co., Ltd. ....................................... 80
4.22.4 Dongfeng-Citroen: Dongfeng Cummins Engine Company Ltd.................................................... 81
4.22.5 Dongfeng Motor Company: Nissan Joint Venture .......................................................................... 81
4.22.6 Dongfeng Motor Company: Financial Results................................................................................. 81
Table 4.34 DONGFENG MOTOR COMPANY: FINANCIAL RESULTS, 2000-2002 .. 82
4.23 Eaton...............................................................................................................................................................83
4.23.1 Eaton: Company Details ...................................................................................................................... 83
4.23.2 Eaton: Company Background............................................................................................................. 83
4.23.3 Eaton: China Operations...................................................................................................................... 84
4.23.4 Eaton: Products and Services .............................................................................................................. 85
4.23.5 Eaton: Financial Results....................................................................................................................... 85
Table 4.35 EATON: FINANCIAL RESULTS, 2001/2002 .................................................... 85
4.24 Fiat Auto ........................................................................................................................................................86
4.24.1 Fiat: Company Details .......................................................................................................................... 86
4.24.2 Fiat: Company Background................................................................................................................. 86
4.24.3 Fiat: China-related Activities .............................................................................................................. 86
4.24.4 Fiat: Financial Summary ...................................................................................................................... 87
Table 4.36 FIAT: FINANCIAL RESULTS, 2000-2002 ......................................................... 87
4.25 Ford Motor Company ................................................................................................................................88
4.25.1 Ford: Company Details ........................................................................................................................ 88
4.25.2 Ford: Company Background............................................................................................................... 88
Table 4.37 FORD MOTOR COMPANY: TOTAL UNIT SALES OF VEHICLES
WORLDWIDE, 2001/2002............................................................................................................... 88
4.25.3 Ford: China-related Activities............................................................................................................. 89
4.25.4 Ford: Jaguar dealers in China.............................................................................................................. 90
4.25.5 Ford: Financial Summary .................................................................................................................... 90
Table 4.38 FORD MOTOR COMPANY: AUTOMOTIVE BUSINESS FINANCIAL
RESULTS, 2000-2002 ....................................................................................................................... 90
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4.26 Geely Group..................................................................................................................................................91
4.27 General Motors China, Inc./Shanghai GM ..........................................................................................93
4.27.1 GM: Company Details .......................................................................................................................... 93
4.27.2 GM: Background................................................................................................................................... 93
Table 4.39 GM: TOTAL INTERNATI0NAL UNIT SALES OF VEHICLES, 1995-1999
94
4.27.3 GM: Shanghai Office & China Operations....................................................................................... 94
Shanghai GM ................................................................................................................................................. 94
4.27.4 GM: Shanghai GM/Buick Operations............................................................................................... 95
4.27.6 GM: Financial Services ........................................................................................................................ 98
4.27.7 GM: Financial Summary ...................................................................................................................... 98
Table 4.40 GM: FINANCIAL RESULTS, 2000-2002............................................................ 98
4.27.8 GM: Future Strategies .......................................................................................................................... 98
4.28 Hainan Sundiro (Xindazhou) Motorcycle Co. Ltd.............................................................................99
4.28.1 Hainan Sundiro: Company Details ..................................................................................................... 99
4.28.2 Hainan Sundiro: Company Background............................................................................................ 99
4.28.3 Hainan Sundiro: Financial Results...................................................................................................100
Table 4.41 HAINAN SUNDIRO: FINANCIAL RESULTS, 2000-2002...........................100
4.29 Hebei Xinglin Automotive Body Group............................................................................................. 101
4.30 Honda/Guangzhou Honda Automobile Company Ltd .................................................................. 102
4.30.1 Honda: Company Details ...................................................................................................................102
4.30.2 Honda: Company Background..........................................................................................................102
4.30.3 Honda: China-related Activities .......................................................................................................102
4.30.4 Honda: Motorbike Activities.............................................................................................................104
4.30.5 Honda: Financial Results ...................................................................................................................105
Table 4.42 HONDA MOTOR: FINANCIAL RESULTS, 2000-2003 ................................105
4.31 Hyundai Motor Company...................................................................................................................... 106
4.31.1 Hyundai: Company Details ...............................................................................................................106
4.31.2 Hyundai: Company Background ......................................................................................................106
4.31.3 Hyundai: China-related Activities ....................................................................................................106
4.31.4 Hyundai: Financial Summary ...........................................................................................................107
Table 4.43 HYUNDAI: FINANCIA L RESULTS, 2000-2002 ............................................107
4.32 ITT Industries ........................................................................................................................................... 108
4.32.1 ITT Industries: Company Details .....................................................................................................108
4.32.2 ITT Industries: Company Background............................................................................................108
4.32.3 ITT Industries: China Operations.....................................................................................................108
Connectors & Switches..............................................................................................................................109
Pumps & Complementary Products.........................................................................................................109
Other..............................................................................................................................................................109
4.32.4 ITT Industries: Products and Services.............................................................................................109
Connectors & Switches..............................................................................................................................109
Defence Products & Services ...................................................................................................................110
Pumps & Complementary Products.........................................................................................................110
Speciality Products .....................................................................................................................................110
4.32.5 ITT Industries: Company Structure .................................................................................................110
4.32.6 ITT Industries: Financial Results .....................................................................................................110
Table 4.44 ITT INDUSTRIES: FINANCIAL RESULTS, 2000-2002 ...............................111
4.33 Jiangling Motors Co. Ltd. ...................................................................................................................... 112
4.33.1 Jiangling Motors: Company Details ................................................................................................112
4.33.2 Jiangling Motors: Co mpany Background .......................................................................................112
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Table 4.45 CHINA JIANGLING: TOP TEN SHAREHOLDERS AS OF DECEMBER
31, 2002
112
4.33.3 Jiangling Motors: Financial Results.................................................................................................113
Table 4.46 CHINA JIANGLING: FINANCIAL RESULTS, 2000-2002 ..........................113
4.33.4 Jiangling Motors: Future Strategy....................................................................................................113
4.34 Jiangsu Peony Automobile Group Co., Ltd. ..................................................................................... 114
4.35 Jiangsu Yueda Motor Co........................................................................................................................ 115
4.36 Jinan Qingqi Motorcycle Co. Ltd. ....................................................................................................... 116
4.36.1 Jinan Qingqi Motorcycles: Company Details .................................................................................116
4.36.2 Jinan Qingqi Motorcycles: Company Background .......................................................................116
4.36.3 Jinan Qingqi Motorcycles: Financial Results.................................................................................116
Table 4.47 JINAN QINGQI MOTORCYCLES: FINANCIAL RESULTS, 2000-2002 .117
4.37 Jinbei GM Automotive Company Ltd. ............................................................................................... 118
4.38 Koito Manufacturing Company Ltd. .................................................................................................. 119
4.38.1 Koito: Company Details .....................................................................................................................119
4.382.2 Koito: History ....................................................................................................................................119
4.38.3 Koito: China Operations ....................................................................................................................119
4.38.4 Koito: Products and Services ............................................................................................................119
4.38.5 Koito: Company Structure .................................................................................................................120
4.38.6 Koito: Financial Results.....................................................................................................................120
Table 4.48 KOITO: FINANCIAL RES ULTS, 2001-2003 ...................................................121
4.39 Mazda .......................................................................................................................................................... 122
4.39.1 Mazda: Company Details ...................................................................................................................122
4.39.2 Mazda: Company Background..........................................................................................................122
4.39.3 Mazda: China Operations ..................................................................................................................122
4.39.6 Mazda: Financial Results...................................................................................................................122
Table 4.49 MAZDA: FINANCIAL RESULTS, 2000-2002 .................................................123
4.40 Mitsubishi Motor Corporation/Harbin Automotive ....................................................................... 124
4.40.1 Mitsubishi: Company Details ............................................................................................................124
4.40.2 Mitsubishi: Company Background...................................................................................................124
4.40.3 Mitsubishi: China-related Activities ................................................................................................124
4.40.4 Mitsubishi: Financial Summary ........................................................................................................125
Table 4.50 MITSUBISHI: FINANCIAL RESULTS, 2000-2002........................................125
4.41 Nissan Motor Company.......................................................................................................................... 126
4.41.1 Nissan: Company Details ...................................................................................................................126
4.41.2 Nissan: Company Background..........................................................................................................126
4.41.3 Nissan: China Operations ..................................................................................................................126
4.41.4 Nissan: Financial Results...................................................................................................................127
Table 4.51 NISSAN: FINANCIAL RESULTS, 2000-2002.................................................127
4.42 Proton .......................................................................................................................................................... 128
4.43 PSA Peugeot Citroen/Guangzhou-Peugeot ....................................................................................... 129
4.43.1 Peugeot Citroen: Company Details ..................................................................................................129
4.43.2 Peugeot Citroen: Company Background.........................................................................................129
4.43.3 Peugeot Citroen: Guangzhou-Peugeot.............................................................................................129
4.43.4 Peugeot Citroen: Financial Results ..................................................................................................131
Table 4.52 PSA PEUGEOT CITROEN: FINANCIAL RESULTS, 2000-2002 ...............131
4.44 Qianjiang Group Co., Ltd...................................................................................................................... 132
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4.44.1 Qianjiang Group: Company Details .................................................................................................132
4.44.2 Qianjiang Group: Company Background........................................................................................132
4.44.3 Qianjiang Group: Financial Results.................................................................................................132
Table 4.53 QIANJIANG GROUP: FINANCIAL RESULTS, 2000-2002.........................133
4.45 Qingling Automobile Group Co., Ltd. ................................................................................................ 134
4.46 Renault ........................................................................................................................................................ 135
4.46.1 Renault: Company Details .................................................................................................................135
4.46.2 Renault: Company Background........................................................................................................135
4.46.3 Renault: China-related Activities .....................................................................................................135
4.46.4 Renault: Financial Summary .............................................................................................................136
Table 4.54 RENAULT : FINANCIAL RESULTS, 2000-2002 ............................................136
4.47 Rolls Royce/Bentley.................................................................................................................................. 137
4.48 Shanghai Automotive Industry (Group) Corporation (SAIC) .................................................... 138
4.48.1 SAIC: Company Details .....................................................................................................................138
4.48.2 SAIC: Company Background ...........................................................................................................138
4.48.3 SAIC: SAIC Chery Automobile Co., Ltd. ......................................................................................139
4.48.4 SAIC: Financial Results.....................................................................................................................139
Table 4.55 SAIC: FINANCIAL RESULTS, 2000-2002.......................................................140
4.49 Shanghai Huizhong Automobile Manufacturing Co., Ltd............................................................ 141
4.50 Skylark Automotive Company Ltd. .................................................................................................... 141
4.51 Suzuki Motor ............................................................................................................................................. 142
4.51.1 Suzuki: Company Details ..................................................................................................................142
4.51.2 Suzuki: Company Background & China-related Activities .........................................................142
4.51.3 Suzuki: Financial Results...................................................................................................................142
Table 4.56 SUZUKI: FINANCIAL RESULTS, 2000-2002 .................................................143
4.52 Tianjin FAW Xiali Automotive Industry Co.................................................................................... 144
4.52.1 Tianjin FAW Xiali Automotive: Company Details .......................................................................144
4.52.2 Tianjin FAW Xiali Automotive: Company Background .............................................................144
4.52.3 Tianjin FAW Xiali Automotive: Vehicle Production...................................................................145
4.52.4 Tianjin FAW Xiali Automotive: Financial Results.......................................................................145
Table 4.57 TIANJIN FAW XIALI: FINANCIAL RESULTS, 2000-2002 ........................146
4.53 Timken......................................................................................................................................................... 147
4.53.1 Timken: Company Details .................................................................................................................147
4.53.2 Timken: History...................................................................................................................................147
4.53.3 Timken: China Operations.................................................................................................................147
4.53.4 Timken: Products and Services.........................................................................................................147
4.53.5 Timken: Company Structure .............................................................................................................147
4.53.6 Timken: Financial Results .................................................................................................................148
Table 4.58 TIMKEN: FINANCIAL RESULTS, 2001-2002 ................................................148
4.54 Toyota Motor Company ......................................................................................................................... 149
4.54.1 Toyota: Company Details ..................................................................................................................149
4.54.2 Toyota: Company Background.........................................................................................................149
4.54.3 Toyota: China-related Activities.......................................................................................................149
4.54.4 Toyota: Financial Summary ..............................................................................................................150
Table 4.59 TOYOTA : FINANCIAL RESULTS, 2000-2002 ...............................................150
4.55 Volkswagen AG/Shanghai Volkswagen Automotive Company Ltd. ......................................... 151
4.55.1 VW/Shanghai VW: Company Details .............................................................................................151
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4.55.2 Volkswagen AG: Company Background........................................................................................151
4.55.3 Volkswagen AG: Shanghai Volkswagen Company Background...............................................151
4.55.4 Volkswagen AG: China Vehicle Production..................................................................................152
4.55.5 Volkswagen AG: Financial Results .................................................................................................153
Table 4.60 SHANGHAI VOLKSWAGEN: FINANCIAL RESULTS, 2001-2002 .........154
Table 4.61 VOLKSWAGEN: FINANCIAL RESULTS, 2001-2002..................................154
4.56 Volvo China Ltd........................................................................................................................................ 155
4.57 Xi’an Qinchuan Automotive Co. Ltd.................................................................................................. 157
4.58 Yuejin Motor Group................................................................................................................................ 158
4.59 Zhengzhou Yutong Bus Co., Ltd.......................................................................................................... 159
4.59.1 Zhengzhou Yutong Bus: Company Details ....................................................................................159
4.59.2 Zhengzhou Yutong Bus: Company Background...........................................................................159
4.59.3 Zhengzhou Yutong Bus: Financial Results.....................................................................................159
Table 4.62 ZHENGZHOU YUTONG BUS: FINANCIAL RESULTS, 2000-2002........159
4.60 Zhuzhou Nanfang Motor Co. Ltd. ....................................................................................................... 160
4.60.1 Nanfang Motors: Company Details .................................................................................................160
4.12.2 Nanfang Motors: Company Background ........................................................................................160
4.12.3 Nanfang Motors: Financial Results..................................................................................................160
Table 4.63 NANFANG MOTORS: FINANCIAL RESULTS, 2000-2002........................161
5 CONTACTS......................................................................................................... 162
5.1 Chinese Government Organisations...................................................................................................... 162
5.1.1 Ministry of Machinery Industry (MMI) ............................................................................................162
5.1.2 Ministry of Foreign Trade & Economic Co-operation (MOFTEC) .............................................163
5.1.3 China State Office of Machinery & Electronics Products Import and Export ............................163
5.1.4 General Administration of Customs ...................................................................................................163
5.2 Trade Promotion Organizations And Associations ........................................................................... 164
5.2.1 China Association of Auto Manufacturers........................................................................................164
5.2.2 China Council for the Promotion of International Trade (CCPIT)/China Chamber of
International Commerce .................................................................................................................................164
5.2.3 Information Center of Beijing Automotive Industry.......................................................................164
6 Exchange Rates............................................................................................................................................... 165
6.1 Exchange Rates: China ............................................................................................................................165
Table 6.1 AVERAGE ANNUAL EXCHANGE RATES, 1997–2002...........................165
6.2 Exchange Rates: Hong Kong..................................................................................................................165
Table A.31 AVERAGE ANNUAL EXCHANGE RATES, 1997–2002........................165
7 Selected Automobile Prices ......................................................................................................................... 166
Table 7.1 RETAIL PRICES ON SELECTED CAR MAKES, 2003...................................166
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Auto Manufacturers in China: Profiles
Introduction
Report Coverage
This report profiles the major domestic and foreign automobile
manufacturers in the People’s Republic of China, including sedan cars,
hatchback cars, minivans, sports utility vehicles and taxis, commercial
vehicles (including trucks, light buses and buses), motorcycles and
automotive parts, accessories and bodies.
© Access Asia Limited, 2003
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Auto Manufacturers in China: Profiles
Executive Summary
© Access Asia Limited, 2003
•
China has emerged rapidly as a consumer market, thanks to the
socialist economic polic ies of the Chinese government, particularly
guided by the ideas of late premier Deng Xiaoping. The result has
been a break-neck expansion in the consumer economy and
industrial output.
•
Along with the growth in the economy, the government has
radically reformed the country’s infrastructure, and transport has
been a key part of this reform. Not only are more new roads being
built, but new city and town development is now designed much
more with the needs of a travelling public in mind.
•
This travelling public is increasingly aspiring to own a car.
Although public transport has improved greatly in recent years,
rising average consumer incomes have meant that Chinese
consumers have started to set their aspirations much higher, and are
not only wishing to buy cars, but are increasingly able to afford to
buy.
•
The industry has helped by focusing attention on manufacturing
more cars aimed at the mass market – with the encouragement of
the government. The race between manufacturers to come up with
the family car of the future is now on.
•
Despite rising incomes, buying a car is still expensive in China.
Not only are ticket prices for cars higher than equivalents in the
West, but taxes are also high. Add to this the fact that few
households have parking facilities, and the situation becomes even
more difficult for many households to buy a car.
•
Things are getting easier though. Chinese retail banks now offer
loans for car purchase. Car insurance policies are now more
common, and can even be taken out over the Internet. Car prices
have also come down, although many consumers are holding off
buying, waiting for China to enter the World Trade Organisation
(WTO), which should mean that tariff on imported cars come
down, thus forcing prices of domestic cars to fall.
•
Dealerships are springing up all over the country, making
availability easier. Government taxes and official red tape is being
reduced, making the car buying process easier. There is also a
flourishing second-hand market emerging, especially as many of
China’s taxi fleets are being forced to replace vehicles on a much
more frequent basis.
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Auto Manufacturers in China: Profiles
Glossary
CCTV - China Central Television
COFCO - China National Cereals, Oils & Foodstuffs Import and Export
Corporation
DIY – Do It Yourself
GATT – General Agreement on Trade & Tariffs
GDP – gross domestic product
HoReCa – hotel, retail & catering
KG – kilogram
JV – joint venture
IPO – initial public offering
ISO - International Standard Organisation
ML – millilitres
MOFTEC - Ministry of Foreign Trade and Economic Relations
Mu – Chinese measurement of land
PRC – People’s Republic of China
RMB – Renminbi (Chinese unit of currency)
SAR – Special Administrative Region (as in Hong Kong & Macau)
SEZ – Special Economic Zone
SOE - state-owned enterprises
SAIC - State Administration of Industry and Commerce
WTO – World Trade Organisation
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Auto Manufacturers in China: Profiles
China Fast Facts
Area:
9,596,960 sq km
Population (2002):
1,300,499,000
Capital:
Beijing (population 12.3 million)
Government:
Single-party communist dictatorship under
Chinese Communist Party (CCP)
Ethnic groups:
Han Chinese (92%)
55 minority nationalities (8%)
Languages:
Mandarin Chinese (official); numerous other
Chinese dialects and
minority languages
Religions:
Predominantly atheist; Buddhist communities in
Tibet and Qinghai; Muslim communities in
Xinjiang, Gansu and Ningxia; Christianity, Daoism
and Confucianism increasingly popular
Currency:
Renminbi (RMB) or Yuan = 10 jiao or 100 fen
GDP per capita (2002):
US$824.20
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Auto Manufacturers in China: Profiles
4 Major Company Profiles
4.1 Anhui Jianghuai Automobile Chassis Co., Ltd.
4.1.1 Anhui Jianghuai Automobile Chassis:
Company Details
Address: 176, Dongliu Road, Hefei City, Anhui Province 230022, PR China
Tel: +86-551-341-5133
Fax: +86-551-342-5437
URL: www.jac.com.cn
Ticker: 600418
4.1.2 Anhui Jianghuai Automobile Chassis:
Company Background
Anhui Jianghuai Automobile Co., Ltd. is a Shanghai-listed company,
located in Hefei province, that manufactures and distributes automotive
chassis and gearbox components for manufacturers of bus, truck and chassis.
Anhui Auto is one of the largest automotive chassis companies in China,
and it has representative offices in Beijing, Chengdu, Shanghai, Guangzhou,
Hangzhou, Jinan and Zhengzhou.
The company is part of Lion Asiapac. Lion Asiapac was incorporated in
Singapore on 6 December 1968 as a private limited company under the
name of Metal Containers (Pte) Ltd. On 18 December 1981, it turned public
and changed its name to Metal Containers Ltd. In 1996, the Company was
acquired by The Lion Group of Malaysia and adopted its present name. The
major shareholders are Amalgamated Containers Berhad and Silverstone
Corporation Berhad (formerly known as Angkasa Marketing Berhad), both
of which are listed on the Kuala Lumpur Stock Exchange.
The Group is a diversified regional manufacturer and distributor. It operates
2 core businesses, namely automobile manufacturing and electronic
component distribution. The automotive division operates in China and its
portfolio of principal products comprise motorcycles, light trucks for
commercial and agricultural use, chassis for passenger vehicles, and gearbox
components.
The motorcycle business is mainly handled by Zhejiang Qianjiang
Motorcycles Co., Ltd. Qianjiang Motor is listed on the Shenzhen Stock
Exchange, and is China’s second largest motorcycle manufacturer by market
share. It assembles more than 15 models of motorbikes with a wide range of
engine capacities from 50cc to 250cc. It has considerable sales support from
about 4,000 dealers and agents all over China.
The manufacturing and selling of light trucks is carried out by Hefei
Jianghuai Automotive Co., Ltd. The light trucks are catered for construction
companies, public transport departments, commercial transport companies,
etc. With a wide distribution network of approximately 120 authorised
distributors and 300 authorised service centres, Hefei Auto is one of the
largest manufacturers of light trucks in China.
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On 29 November 2002, the Group successfully completed the acquisition of
Angkasa Transport Equipment Sdn Bhd, which holds a 16% stake in Anhui
Jianghuai Automobile Co., Ltd (AHJA) and another 25% stake in Hefei
Jianghuai Automotive Co., Ltd (HFJH).
4.1.3 Anhui Jianghuai Automobile Chassis:
Financial Results
The company saw a massive 73% sales rise in 2002, resulting in a profit
growth of nearly 49%. Anhui Jianghuai leads the rest of the manufacturers
in supplying chassis to the majority of automotive manufacturers in China.
As a leading bus manufacturer, the company also has a strong hold over the
market for buses. In both these core markets, there has been particularly
strong grow over recent years, and it would be expected that 2003 results
would also show strong growth.
Table 4.1
ANHUI JIANGHUAI AUTOMOBILE CHASSIS CO.,
LTD.: FINANCIAL RESULTS, 2000-2002
RMB million
Sales revenue
Net profits
Sales growth (%)
Net profit growth (%)
Net profit as % of sales
Total assets
2000
1,793.64
81.65
4.55
651.41
2001
1,989.38
88.96
10.91
8.95
4.47
1,371.37
2002
3,443.00
132.41
73.07
48.84
3.85
1,817.74
Source: Access Asia from company information.
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4.2 ASIMCO
4.2.1 ASIMCO: Company Details
China Office: Parkview Center, 4/F, No. 2 Jiangtai Road, South Side,
Chaoyang District Beijing 100016, PR China
Tel: +86-10-6438-2750
Fax: +86-10-6438-2735/6
US Office: 924 “B” Calle Negocio, San Clemente, CA 92673, USA
Tel: +1-714-369-1005
Fax: +1-714-369-1166
URL: www.asimco.com
4.2.2 ASIMCO: History
Asian Strategic Investments Corporation (ASIMCO) was established in
February, 1994 when it raised US$ 300 million through two limited
partnerships and completed its first joint venture in August of that year.
ASIMCO is owned equally by Management, General Electric Pension Trust
and Trust Company of the West, which is the managing general partner.
Included among the partners are pension funds, insurance companies,
financial institutions and individual investors.
During ASIMCO’s acquisition phase, 11 joint ventures were established and
majority interests in core companies were acquired. During 1998 and 1999,
the company initiated a process of management restructuring, beginning
with the ownership of ASIMCO. In April 1998, the General Electric Pension
Trust replaced two former shareholders of ASIMCO. General Electric has
agreed to provide ASIMCO with access to training and other corporate
resources, and has placed retired senior executives of GE to serve on
ASIMCO’s board of directors.
In most of the joint ventures, established Chinese management was replaced
with younger, management-educated professionals who had experience
working for multinational corporations and managing operations in China.
4.2.3 ASIMCO: China Operations
In China, ASIMCO’s broad range of manufacturing capabilities provides the
market with “one stop shopping”, eliminating the need for car manufacturers
to work with many different suppliers.
Because ASIMCO has management and operating control of all of its
factories and its basic strategy is designed around building a global market,
it has concentrated on improving Chinese production product and service
quality. ASIMCO also holds safety stock inventories in close proximity to
its customers production facilities in order to avoid supply problems.
It is for these reasons that ASIMCO has so many ventures spread throughout
China. These factories are detailed below:
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Table 4.2
ASIMCO SUBSIDIARIES 2003
Location
Beijing
Danling/Sichuan
Guangzhou/Guangdong
Harbin/Heilongjiang
Company names
ASIMCO Casting
ASIMCO Tool and Die
BYC
ASIMCO Danchi
ASIMCO Brake
Harbin Feiben
Langfang/Hebei
ASIMCO Meilian Brake
ASIMCO Meilian Foundry
Ningguo/Anhui
ASIMCO Anhui
Nanyue/Hunan
Shashi/Hubei
CR
NYC
ASIMCO Hubei
Hubei Delphi
Shanxi
Shuangtai/Sichuan
Yizheng/Jiangsu
Zhuhai/Guangdong
SICC
ASIMCO Shuangtai
ASIMCO CYPR
CAC
Cleveland, Ohio
and San Clemente
ASIMCO International
Products
Aluminum and investment castings
Molds and dies
Diesel fuel injection systems
Gears and shafts
Light duty brake systems
Ignition coils, horns, relays and other
electrical parts
Brake Parts, air-brake compressors;
ductile iron castings
Brake Parts, air-brake compressors;
ductile iron castings
Rubber Seals, o-rings, rubber parts,
hydraulic jacks, oil seals
Oil Seals
Diesel fuel injection systems
Starters, heavy duty alternators and
DC motors; passenger car alternators
Starters, heavy duty alternators and
DC motors; passenger car alternators
Engine blocks and heads
Wheels, wheel rims and chrome parts
Piston rings
Disc brake pads and shoes; clutch
facings
Sales, engineering and product
development support
Source: Access Asia from company information
ASIMCO companies sell to China-based assemblers, Chinese aftermarket
customers and international customers. ASIMCO’s operating units maintain
their own sales forces, primarily dealing with the OE customers. However,
there is a trend towards co-ordinating marketing throughout the group and to
eventually centralise sales through ASIMCO International, which already
co-ordinates marketing for export.
ASIMCO established a technical center in the Pudong district of Shanghai
during the first half of 2000. In addition to sales and technical personnel, the
center includes prototype manufacturing and test equipment.
4.2.4 ASIMCO: Beijing Tianwei Fuel Injection
Equipment Inc. (BYC)
BYC produces diesel fuel injection pumps, nozzles, and components. It
supplies mechanical A- and P-type pumps and injector nozzles to over 50
major manufacturers of diesel engines. The company’s specialised
production techniques include high-volume precision grinding, machining
and assembly operations, each of which are controlled by ISO9000 QC
inspection and testing processes.
4.2.5 ASIMCO: Harbin Flying Automotive Electric
Apparatus Co., Ltd.
Harbin is a high-volume manufacturer of electrical automotive components,
ranging from plastic injection molding to metal stamping and precision
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machining. Many of its over 100 products are used as original equipment for
many of the world’s leading automobile marques.
4.2.6 ASIMCO: Sichuan Danchi Industry Co., Ltd.
Known as Danling, this enterprise is an ISO 9000-certified metal processing
facility specialising in the production of gears and related components. It is
China’s leading producer of motorcycle gears, with a 33% market share.,
Danling offers cold headed metal forming to precision grinding and honing,
and has become a key supplier of a wide range of processed metal products.
Danling growth plans include raising total production capacity to exceed
24,000 sets of gears by end of 2000, making it the largest single producer of
motorcycle gears. Danling’s customers include the Honda, Kawasaki,
Yamaha and Suzuki joint ventures in China.
4.2.7 ASIMCO: Langfang Meilian Brake
Installation Co., Ltd.
Langfang is a foundry and metal processing facility supplying the
international automotive market with brake, chassis and steering
components. Its foundry features duplexing furnaces, a Koyo moulding line,
a GF sand system and Pangborn shot blasting. It is a preferred supplier to
Audi and supplier of 60% of all brakes and air compressors installed as
original equipment in China.
4.2.8 ASIMCO: CAC Brake Co., Ltd.
CAC is a leading producer of brake and friction products, supplying
domestic and foreign automobile producers. CAC has invested heavily in
new, high-tech equipment, to provide high-quality production and precision
capability. With over 400 products exported to OEM and aftermarket
applications in Asia, Africa, North America, Europe, South America and
other world markets, CAC competes on a global scale. Automobile
assemblers such as Volkswagen Audi and Jeep use its products. Its
replacement parts applications cover virtually all brands in the global car
market, plus many applications for light and heavy trucks and agricultural
and industrial equipment.
4.2.9 ASIMCO: Hubei Super-Elec Auto Electric
Motor Ltd., Liability Co. (HSE)
HSE is an integrated manufacturing facility covering die casting and tooling
to production of solid state electrical assemblies. It is a full service supplier
of automotive electrical components and employs sophisticated testing
capabilities and Western-influenced management processes.
HSE was founded in 1965 as a producer of DC generators for China’s
agricultural industry. By 1969, HSE was supplying generators to the
growing domestic automotive industry, and had expanded into starter
motors, voltage regulators and fan motors. In 1992, HSE signed a licensing
and technology transfer agreement with General Motors. HSE also has an
established network of aftermarket services centres with offices in more than
30 major cities throughout China. It also has an internal technical service
department at the factory site.
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4.2.10 ASIMCO: Anhui Ningguo Zhongding
Automobile Components Co., Ltd.
Ningguo is a rubber molding and processing facility offering a broad range
of products from simple “O” ring seals to speciality seals, boots and covers.
Ningguo is also one of China’s largest exporters of hydraulic automobile
jacks, producing hydraulic jacks and other related products including
components and assemblies used in machine tools, automobile braking
systems, shock absorbers, mining machines, agricultural equipment and CV
lenses for use in medical applications. The company attained CCIB and
QCC ISO9000 registration in December of 1995.
4.2.11 ASIMCO: Shanxi International Casting Co.
Ltd.
Located at the site of an existing foundry in Shanxi Province, this joint
venture is aiming to become one of the world’s lowest cost sources of
castings. In the first phase of operations, the factory will produce up to
55,000 tons per annum of iron diesel engine castings. Caterpillar will
manage the day-to-day operations of the joint venture and has already
assigned four western engineers to work at the joint venture full-time.
Shanxi began trading in late 1998.
4.2.11 ASIMCO: Nanyue Fuel Injection Pump
Assembly Co., Ltd. (NYC)
An industry leader for over 40 years, NYC’s processing and manufacturing
capabilities have improved significantly as a result of the co-operation
between the joint venture management teams. New state-of-the-art
equipment such as Studer match grinders, UVA internal grinders, and
Schaudt cam grinders have greatly enhanced the level of NYC’s machining
precision and quality.
4.2.12 ASIMCO: Sichuan Shuangtai Wheel Co.,
Ltd.
Shuangtai is a metals processing facility offering alu minium die casting,
steel stamping and chrome plating services. It is one of the most modern and
well-equipped wheel production facilities in the world, capable of producing
6,000,000 motorcycle wheels and an additional 800,000 scooter and
automobile wheels per year. Commanding a full 30% of the domestic
market, Shuangtai supplies to all major Chinese motorcycle manufacturers
including the Honda, Yamaha and Suzuki joint ventures.
4.2.13 ASIMCO: Yizheng Shuang Huan Piston
Ring Co., Ltd. (CYPR)
CYPR is the largest producer of piston rings for internal combustion engines
in China. CYPR is a leading manufacturer of ductile iron castings, for
automobiles, motorcycles, air compressors and agricultural and industrial
machinery.
4.2.14 ASIMCO: Alliance Brewing Group
ASIMCO’s investments in the Beijing Shuanghesheng Five Star Beer Co.
Ltd. and Beijing Three Ring Asia Pacific Beer Co. Ltd. were completed in
1995. The ASIMCO Brewing Group was formed to co-ordinate strategic
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planning, manufacturing, marketing, distribution and finance. The Group
has been particularly active in distribution both inside and outside China. It
also owns a distribution company in Beijing (SAM) and has worked with
Five Star to expand its distribution throughout China. In addition, the Group
has developed export programs to the UK and US. The Group is one of the
leading brewing companies in China. Established in 1915, Five Star has a
long history as a leading Chinese beer brand. Once a Five Star licensee,
Three Ring has developed a very successful regional brand, Yun Hu.
See Access Asia’s report on the beer market in China for more detail.
4.2.15 ASIMCO: Products and Services
ASIMCO’s auto parts production in China includes foundry products,
brakes, diesel engines, electrical products and engine parts.
Table 4.3
ASIMCO PRODUCTS AND JOINT VENTURE
PARTNERS
Company
General Electric
Bosch
Caterpillar
Relationship
Shareholder
License
Co-investment
Chicago Rawhide (SKF)
Honeywell
Sub-Joint Venture
Proprietary
Manufacturing
License
Sub-Joint Venture
License
License
Delco Remy America
Delphi
Nippon Piston Ring
Stribel (Alcoa Fujicora)
Area of Co-operation
Strategy / Management
Light Duty Brakes
Engine Blocks and
Heads
Oil Seals
Various Products
Starters
Alternators
Steel Rings
Central Electric Blocks
Source: Access Asia from company information
4.2.16 ASIMCO: Future Strategy
From 2000 forward, ASIMCO accelerate growth by emphasising product
and market development, increasing production at several start-ups and
targeting key global customers. It is the company’s goal that by the end of
2003, 50% of its revenue will be generated by export sales. ASIMCO
already supplies a number of major US automotive companies including
Delphi and Honeywell. ASIMCO also intends to diversify from the
automotive sector and start supplying manufacturers in other industries.
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4.60 Zhuzhou Nanfang Motor Co. Ltd.
4.60.1 Nanfang Motors: Company Details
Address: 1, Tiantai Xilu, Zhuzhou Hi-Tech Development Zone, Zhuzhou
City, Hunan Province 412007, PR China
Tel: +86-733-855-9515
Fax: +86-733-855-9714
URL: www.nanfangmotor.com.cn
Key personnel: Cai Sanding –chairman.
Ticker: Shenzhen SE: 000738
4.12.2 Nanfang Motors: Company Background
Nanfang Motors began from the setting up of the Zhuzhou Army Factory in
1950. The company was then involved in the aerospace industry for several
years throughout the 1980s, and has since been involved in the manufacture
of aero engines.
The company began manufacturing motorcycles only in 1997, being one of
the companies to jump on the bandwagon of this then growth market. The
company’s core market continues to be engines, especially aero engines, as
well as other heavy industrial products. It is therefore less exposed to the
drop in motorcycle demand than many other leading manfaucturers, and has
thus been able to survive the market slump by reverting to largely
concentrating on non-motorcycle products.
The company will continues to produce a line of motorbikes though, through
its 75% -owned motorcycles subsidiary, and is likely to continue to be a key
player in the market.
4.12.3 Nanfang Motors: Financial Results
Nanfang Motorcycles cleared RMB 1,412 million in 1997 but was
struggling to maintain sizeable sales during the first 6 months of 2000 with
only RMB 658.1 million recorded. The company has been seeing its sales
drop over a number of years, and this can be taken as a direct reflection of
the effects of the market contraction and continuing price war.
Nanfang saw its sales continue to drop until 2002,when the company
recorded both its first sales increase in many years, and its first clear profit.
As with other motorcycle manufacturers in China, Nanfang will need to both
step-up its targeting of overseas markets, and increase its spending on
marketing and advertising within the domestic market, if it is to reverse its
current declining sales revenue trend. The company now attainst almost two
thirds of its sales revenues from overseas markets.
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Table 4.63
NANFANG MOTORS: FINANCIAL RESULTS,
2000-2002
RMB million
Total sales revenues
Total net profit
Turnover annual % growth
Net profit annual % growth
Net profit as a % of turnover
Total assets
2000
440.04
-161.96
-36.81
880.92
2001
203.33
-219.02
-53.79
35.23
-107.72
661.90
2002
347.52
2.23
70.91
101.02
0.64
1,109.96
Source: Access Asia from company information
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